Indonesia's newly installed president B.J. Habibie last night pledged to abide by the reform programme agreed last month with the International Monetary Fund.
In his first address to the nation as president Mr Habibie said: 'We need a clean government, an efficient government, free from corruption, collusion and nepotism and to give business the freedom to compete fairly.' Mr Habibie did not say if he would reinstate the IMF-agreed cuts in fuel subsidies which former president Suharto reversed this month in a vain attempt to quell public disquiet over the country's deepening economic malaise.
An IMF official in Washington said the future of the US$43 billion rescue package remained in limbo until the political situation stabilised.
Mr Habibie said a new cabinet to be announced today would review laws that allowed monopolies to flourish, reorganise the banking system and pay special attention to the state budget.
'We want to recover the economic dynamism,' Mr Habibie said.
News of Mr Suharto's resignation cheered some regional stock markets yesterday, but regional currencies were uninspired as traders and investors have long doubted Mr Habibie's economic abilities.
Stocks linked to the Suharto family are expected to plunge today when Jakarta's stock market re-opens after a public holiday.
